December 3, 2007

Indian chicken to cost more on high soymeal prices

Poultry meat consumers in India may feel the pinch of costlier chicken as its prices which was already over Rs 100 a kg (dressed), may possibly go up further by Rs20 due to rising cost of soymeal -- one of poultry's main feed ingredients.

Poultry Federation of India (PFI) president Jagdish Singh Dhur said chicken prices are set to see a "northward movement" as it is projected to increase by Rs18 to Rs20 per kilogramme with production costs going up by more than 20 percent.

Farm price of a live bird is currently between Rs 34-35 a kg as production costs hover around Rs 36 a kg, Dhur said. The retail price of a live bird is around Rs 80 a kg.

Dressed chicken is being sold between Rs 100 and Rs 120 a kilogramme in Delhi while prices are between Rs90 to Rs100/kg in Mumbai and Kolkata. They are lowest in the southern region, especially Bangalore, costing Rs 70 to 80 a kg.

According to Vijay Tijare, group general manager of Venkateshwara Hatcheries, 75 percent of production costs come from feed, thus, the need to hike prices of their chicken products.

Another branded chicken seller Godrej Agrovet's Chief Operating Officer R S Vijay said rising input costs have eaten up the profit margins, hence, the Rs3 to Rs5 kg pass-on increase to their consumers.

Soymeal is the most used protein supplements and it accounts for 25 to 30 percent of the total poultry ration. Its prices have risen significantly in the past one year from Rs 10 a kg to Rs 18 a kg. 

US$1 = Rs39.525 (As of November 30, 2007)